metoo
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Post by metoo on Aug 14, 2017 20:15:54 GMT
They may have fixed the bug where reinvestments were placed at the same rate instead of the new lower priority rate. Have they said so?
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metoo
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Post by metoo on Aug 14, 2017 20:20:21 GMT
Due to loan repayments etc I currently have 7 open loans requests, first one from the 10th, so that is 4 days already. see my post above. FIVE WEEKS! I'm out now. I left a nominal sum on 1 August, half on express which has been invested and half on regular, which is (of course) still doing nothing. Not worth leaving any on Market rate. I left a tenner on from 3 July as a marker, but moved it to 'Priority' after over 5 weeks of it sitting idle! I suppose I should have left it to see how long it would stay there.
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littleoldlady
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Post by littleoldlady on Aug 14, 2017 21:46:01 GMT
They may have fixed the bug where reinvestments were placed at the same rate instead of the new lower priority rate. Have they said so? No. In fact they never admitted that there was a problem. But I have just had a renewal at 5.9%, which is the latest priority rate, and I am pretty sure that I have never placed an order at <6%.
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metoo
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Post by metoo on Aug 14, 2017 23:28:51 GMT
No. In fact they never admitted that there was a problem. But I have just had a renewal at 5.9%, which is the latest priority rate, and I am pretty sure that I have never placed an order at <6%. Worth keeping an eye on when the rate changes.
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IFISAcava
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Post by IFISAcava on Aug 15, 2017 11:55:29 GMT
5 days at priority and no match yet
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greatmarko
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Post by greatmarko on Aug 15, 2017 18:06:23 GMT
5 days at priority and no match yet 11 days waiting at Priority rate here now
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metoo
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Post by metoo on Aug 15, 2017 18:48:44 GMT
5 days at priority and no match yet 11 days waiting at Priority rate here now You will need to compare the rate on your "open orders" with the current Priority rate, and relist at the new Priority rate if lower. Mine lent after 5 days including the weekend.
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nrw
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Post by nrw on Aug 15, 2017 19:00:51 GMT
I've just logged on for the first time for a few weeks and seen that my £thousands of loan orders made on 26.07.2017 (3 weeks ago) at the priority rate have not matched. It appears that this needs proactively managing as the rapidly reducing priority rate means that these orders need to be cancelled and reordered at today's priority rate. Which is only 5.9%. This is farcical - I signed up to a platform which was 'fire and forget', providing a decent rate. It's neither of those, as it needs careful management and the cash drag makes brings the rate to a level which doesn't reflect the risk IMHO.
I'm oooot.
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IFISAcava
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Post by IFISAcava on Aug 15, 2017 19:33:53 GMT
I've just logged on for the first time for a few weeks and seen that my £thousands of loan orders made on 26.07.2017 (3 weeks ago) at the priority rate have not matched. It appears that this needs proactively managing as the rapidly reducing priority rate means that these orders need to be cancelled and reordered at today's priority rate. Which is only 5.9%. This is farcical - I signed up to a platform which was 'fire and forget', providing a decent rate. It's neither of those, as it needs careful management and the cash drag makes brings the rate to a level which doesn't reflect the risk IMHO. I'm oooot. I mentioned this issue a few weeks back. What would help from GS is an email when rates change as a prompt to check open orders.
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greatmarko
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Post by greatmarko on Aug 15, 2017 19:52:27 GMT
11 days waiting at Priority rate here now You will need to compare the rate on your "open orders" with the current Priority rate, and relist at the new Priority rate if lower. Mine lent after 5 days including the weekend. So essentially, if you're already in the "Priority" queue, and then rates drop, the previous "priority" queue you were in becomes the new "market" queue, which you're effectively moved across to without warning? That's pretty underhanded of GS!
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metoo
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Post by metoo on Aug 15, 2017 19:55:49 GMT
You will need to compare the rate on your "open orders" with the current Priority rate, and relist at the new Priority rate if lower. Mine lent after 5 days including the weekend. So essentially, if you're already in the "Priority" queue, and then rates drop, the previous "priority" queue you were in becomes the new "market" queue, which you're effectively moved across to without warning? That's pretty underhanded of GS! More like not thought through.
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greatmarko
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Post by greatmarko on Aug 15, 2017 21:07:47 GMT
So essentially, if you're already in the "Priority" queue, and then rates drop, the previous "priority" queue you were in becomes the new "market" queue, which you're effectively moved across to without warning? That's pretty underhanded of GS! More like not thought through. Has anyone raised this with GS? ...do we know if this is a bug, or by design? If it's by design, I still maintain that's it's pretty underhanded as it isn't made clear to investors.
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littleoldlady
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Post by littleoldlady on Aug 16, 2017 6:51:51 GMT
More like not thought through. Has anyone raised this with GS? ...do we know if this is a bug, or by design? If it's by design, I still maintain that's it's pretty underhanded as it isn't made clear to investors. Yes, but they denied that there was a problem, but anyway I think they may now have fixed it, see my post above. I still recommend a daily check though.
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savernake
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Post by savernake on Aug 16, 2017 7:13:26 GMT
This wording is clearly displayed at the bottom of the Re-investment settings page on your dashboard:
'The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days. The Priority Rate is 0.1% below that, and will increase your prospects of being matched with a loan sooner. A Market Rate order will move each day with the Market Rate, while a Priority Rate order will be fixed at that rate once placed.'
It seems clear that the priority rate will not change once you've placed your order. It's not a bug, this is how the system is designed to work. This explains why some lenders are getting their priority orders stuck high and dry for long periods of time. You need to keep checking the priority rate every day. However, you shouldn't have to keep lending at priority rate, it should be possible to get matched quickly at Market rate. The fact this isn't the case is clear evidence the exchange is broken.
I don't see how this model can be sustainable in the long run. I would love to know how Growth Street expect to grow their business if they continue to operate a flawed exchange which makes their product less competitive and less attractive to lenders by the day. This platform is in need of a serious overhaul - and quickly.
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r00lish67
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Post by r00lish67 on Aug 16, 2017 7:28:32 GMT
I don't believe that GS designed the system to leave lenders seeking an extra 0.1% return high and dry for weeks, I think it was a muck-up. What I'm more disappointed about is that they haven't acknowledged that this isn't working very well, and also in my particular case that they didn't reply to my direct e-mail about it.
As it is, it clearly isn't worth retaining this market/priority nonsense - I think they'd be better served by moving to a LendingWorks / Ratesetter type model where rates are adjusted fluidly or perhaps on a weekly basis. I just don't see the value in trying to hop the (unknown) queue for a potential 0.1% gain.
Aside from having some of my money left high and dry for 5 weeks before I realised, which was very irritating, I've otherwise been very happy with them.
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